Switches, Routers Equipment Market Put at $1.68 Billion in Q2

By TED GLANZER
TMCnet Communications and Broadband Columnist

Worldwide market grows 9 percent, according to a report released by Dittberner Associates, Inc.

The worldwide market for switches and routers equipment grew by 9 percent to $1.68 billion in Q2 2005, according to an international market researcher's report released on Friday.

"Network operators" changing their networks from legacy ATM/Frame Relay to converged IP networks is the primary reason for the surge, Dittberner Associates, Inc. stated in its "Worldwide Q2 2005 Multi-Service Switch and Router Shipments Analysis."

Not surprisingly, the router and switch market was dominated in Q2 2005 by the Big Three: Cisco Systems and Juniper Networks for routers and Nortel Networks primarily for switches, the report states.

Cisco led all vendors with $736.5 million in revenue in Q2 2005, which accounted for 43.8 percent of the router and switch global market share.

Juniper Networks came in a distant second with $304 million, which accounted for 18 percent of the market share.  Nortel Networks rounded out the top three, accounting for 15.55 percent of the market, generating $261.3 million in revenue. 

Smaller vendors accounted for the remaining $392.4 million in revenue, representing 22.56 percent of the global market share.

According to the report, the "edge equipment segment" accounted for 53 percent of the revenues, while "core equipment" made up the remaining 47 percent.

Once again, Cisco came out on top, capturing 51.52 percent of the core market share and 36.76 percent of the edge market share in the second quarter.

"The quarterly analysis concluded that 72 percent of the combined quarterly revenue from the carrier switches and routers market was from router sales while switches accounted for 28 percent," the report states.

Cisco dominated the router market with 55.6 percent.  Nortel Networks captured 56.6 percent of the switch marker in Q2 2005.

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Ted Glanzer is assistant editor for TMCnet. For more articles by Ted Glanzer, please visit:

http://www.tmcnet.com/tmcnet/columnists/columnist.aspx?id=100033&nm=Ted%20Glanzer

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